PayPal Holdings, the digital payment giant, is set to cut approximately 2,500 jobs, constituting 9 percent of its global workforce, according to a letter from CEO Alex Chriss.
The decision, outlined in a communication to staff, aims to “right-size” the company by implementing both direct cuts and the elimination of open positions throughout the year. Affected employees are anticipated to be notified by the end of the week.
PayPal reported revenue of $7.4 billion with operating income of $1.6 billion for Q3 2023. PayPal, which has 430 million customers on its digital payment network, will reveal its revenue and profit for Q4 on February 2024.
The chart indicates that PayPal is under margin pressure.
In the letter, Alex Chriss stated, “We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth.” This move aligns with the company’s strategy outlined by Chriss in November, where he expressed intentions to boost revenue beyond transaction-related volume and committed to streamlining the fintech firm by reducing its cost base.
The restructuring efforts come in the wake of PayPal’s recent announcement of the launch of new artificial intelligence-driven products and a one-click checkout feature. The company aims to position itself strategically for sustainable growth and improved efficiency in a dynamic market landscape.